Moody's Investor Service has placed Michigan State University's credit rating under review for a downgrade amid fallout from the Larry Nassar case.

The agency will "assess credit risks surfacing from the conviction of former employee Larry Nassar on sexual assault charges," according to a notice filed Tuesday by the agency. "The review will focus on any financial, legal, or reputational impacts on the university, as well as the strength of the university's management and governance, that we believe would affect the university's credit quality."

MSU said it was aware of the review.

"Our focus is on taking the actions that demonstrate that the voices of the survivors have been heard, and on creating a culture that provides a safe environment for all members of our community. These actions will provide the right foundation for the university’s future," spokesman Jason Cody told the Free Press.

Last week, a judge sentenced Larry Nassar to 40 to 175 years in prison as part of a plea deal on seven counts of first-degree criminal sexual conduct involving more than 156 girls and women over more than two decades. MSU has been accused of covering Nassar's actions up. They deny they did so.

MSU is currently rated with an Aa1 rating, the second-highest possible rating. The rating affects the university's ability to borrow money through bonds and the interest rates it gets. The rating downgrade could affect about $975 million of long-term debt currently held by the university.

"Our review will include the potential financial impact on the university, offset by the university's available reserves and insurance coverage," the agency wrote. "MSU is facing civil lawsuits by over 100 women, alleging that the university's action and inaction allowed Nassar's abuse to persist. Potential negative implications for the university's student demand and fundraising will also be assessed during the review period."

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Women listen to a speaker while gathered in front of the administration building following a march on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

Women listen to a speaker while gathered in front of the administration building following a march on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People listen to a speaker while gathered in front of the administration building following a march on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People March along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Grand River in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march along Michigan Avenue in East Lansing on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

People march on Friday January 26, 2018 on the Michigan State University campus in East Lansing while speaking out against sexual assault following the Larry Nassar case.
Ryan Garza, Detroit Free Press

The agency also noted all the various reviews coming, from the NCAA to potential congressional reviews, along with an investigation by the Michigan Attorney General. It said it would be watching closely.

"MSU's response to the investigation, requests and inquiries, and any potential findings, will weigh heavily in our analysis," the agency said.

Moody's downgraded Penn State University's credit rating after the Jerry Sandusky scandal. The Associated Press detailed the costs Penn State paid as including: a $48-million “fine” levied by the NCAA against Penn State that has gone to pay for anti-child-abuse efforts in Pennsylvania; $27 million in lawyer fees to defend lawsuits; nearly $14 million that includes the legal defense of three former administrators facing criminal charges for their handling of Sandusky complaints; $5.3 million for crisis communications and other consultants, as well as other costs.

Watch: Michigan State students react to resignation of President Lou Anna Simon

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Students at Michigan State University were generally pleased about Lou Anna Simon's Wednesday night resignation over the Larry Nassar sex abuse scandal, though some who know her personally were disappointed.
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